Current crisis is a failure of socialism not capitalism

The current crisis dates back to the LBJ administration and the community reinvestment act.

Category:

News & Politics

Tags:

• economic
• crisis
• socialism
• capitalism
• community
• reinvestment
• act
• LBJ
• Ron
• Paul
• Bush
• Iraq
• Terror
• Obama

[georgekostaras]

Capitalism works correctly when companies are closely and reliably regulated. In Canada, our banking system was more heavily regulated than most countries and we're better off.

[jjrglobal]

@georgekostaras

Regulation nisnt what saved Canada, and deregulation isnt what hurt the US. Capitsalism can only work properly when the governemnt is NOT involved, this includes the Federal Reserve

[HouseofAtreus01]

I believe it was Franklin Roosevelt that said the only problem with capitalism was capitalists. There is some truth to the fact that individuals in the system are to blame for some of this. Banks made loans to people they knew couldnt pay it back, but then again the people took those loans knowing the same.

So maybe the system is not to blame, maybe the people are. Selfish, lazy and degenerate and ignorant people.

[jjrglobal]

@HouseofAtreus01

I wouldn't take anything FDR said to seriously, considering the harm his New Deal has dealt us for almost 80 years. Fannie Mae is one of his great ideas and is one of the major responsible parties in this crisis. Progressive thinking is what got us into this mess and progressive thinking will only worsen the crisis.

[Guest4000]

Right, right, right... the Community Reinvestment Act is to blame despite the fact that less than 10% of the high coast loans that were issued (which caused the collapse) were issued by CRA regulated banks. On top of that, even the subprime loans that were made by CRA regulated banks, had, on average, lower interest rates than non-CRA regulated banks. Furthermore, CRA-regulated banks were half as likely to resell (securitize) such loans (another contributor to the crisis).

[jjrglobal]

No the CRA is not totally to blame, but the government is. Easy money created by manipulation of the interest rate by a small group independent from the government, along with the implicit guarantee by the government GSE's Fannie and Freddie, and government funding for criminals organizations like ACORN combined with idiotic policy like the CRA created this mess, not the free market. No amount of regulation will ever protect investors, it is up to the investor to protect themselves.

[thomasdosborneii]

If there weren't slumlords, those people would be living on the street. Oh, and when they were given decent living conditions in the housing projects, look what they did with them--turned them into crime-infested living hells and destroyed them utterly.

[tetdragon]

Capitalism creates productive employment and promotes fair exchange. (effort for money).

[connorqb17]

what is this a Keynes & Monetary video? Yes there needs to be stable prices, but inflation causes prices to go out of control, you think that by the new printing of more money that prices are going to get stable? The problem happened in 1913. When Woodward Wilson wrote the Federal Reserve act. Wilson even later said it was a huge mistake and felt terrible about it. The problem is the central bank.

[calstategop]

@sfldd No he didn't take the race card elsewhere.

[flynn2008]

Road to Serfdom by Freiderick Hayek is my bible.

[dave19941000]

What does what he said have to do with Socialism apart from nothing.

[sfldd]

Basically what this guy is saying is that banks went under because they were forced to give loans to blacks. Is he serious? I don't have the statistics, but I would bet my house that a lot more risky loans were given to whites than blacks.